Galp Rises Most in Almost 5 Months on Stake Price: Lisbon Mover

Galp Energia SGPS SA (GALP) rose the most
in almost five months in Lisbon trading after Amorim Energia BV
and Eni SpA agreed on the price for a 5 percent stake in
Portugal’s biggest oil company.

The stock climbed as much as 8 percent, or 87 cents, to
11.725 euros, the biggest jump since Nov. 30. Galp traded at
11.71 euros at 11:24 a.m. in the Portuguese capital, giving the
oil company a market value of 9.7 billion euros ($13 billion).

Amorim Energia, a holding company controlled by Portuguese
investor Americo Amorim, plans to buy a 5 percent stake in Galp
from Eni of Italy for 14.25 euros a share. The transaction is
expected to be completed in three to four weeks, a spokesman for
Americo Amorim who asked not to be identified said in a
telephone interview yesterday after the close of trading.

“This premium highlights that Amorim Energia values a
minority stake in Galp at well above the current stock price,
sending a positive message at a time when investors are very
focused on the potential negative impact of the planned sale of
between 18 percent and 20 percent by Eni (ENI) over the next five
months,” Banco Espirito Santo SA (BES) analysts Filipe Rosa and
Manuel Albuquerque said today in a research note. They have a
“buy” rating on Galp shares.

Galp’s main shareholders on March 29 agreed on a proposal
for Eni to sell a stake, paving the way for an exit from the
Portuguese oil company. Eni, one of Galp’s two largest
shareholders, had agreed to sell a 5 percent stake to Amorim
Energia for an undisclosed price within 150 days. Eni and Amorim
Energia, which is part-owned by Angolan oil company Sonangol EP,
each hold 33 percent of Galp.